The Pursuit of Luxury Property
The Pursuit of Luxury Property
Have you ever heard the term “Luxury Property”? We see homes that celebrities and the ultra-wealthy live in and think “those are luxury properties” and “there’s no way that a n average family could ever afford that!” In most cases, that’s a fair assessment! Most of us can only ever dream about living in a vast estate with all the amenities that we could ever hope for.
In reality, luxury property is a bit of a moving target. It’s defined differently across varying markets with differing property values, median resident income, and area development. The Institute for Luxury Home Marketing, which specializes in training Real Estate professionals in the sale of high-end homes, defines luxury agents and properties as those in the top 10% of their given market. Thus, in some cities the price point for a luxury property may be below 1 million while in others it may be far above.
Because of the differences in markets, there is no specific checklist that covers what a luxury property is. There are, however, some commonalities. We’ve listed them below!
Location, location, location:
Arguably the key to most real estate, location is a huge factor in luxury property. Prime location with regards to the areas desirable features is huge. This, of course, varies from market to market. What are considered key and desirable location features in New York City may be very different than Omaha Nebraska. In general, though, think about usable natural features (i.e. lakes) and attractions like shopping, restaurants, etc.
High End Finishes:
This is almost everyone’s favorite topic when it comes to luxury properties. There’s just something inherently fun about looking at finishes, isn’t there? Looking at high end appliances that go perfectly with top of the line cabinets and gorgeous marble counters, what’s not to love? What’s the brand? Who’s the designer? What was the architect’s vision?
Amenities and Unique Features:
This one seems to vary from market to market. However, in general, amenities help dictate whether a property is in the luxury bracket. Maybe it’s association amenities that are high end and exclusive, such as a pool, restaurant, spa, etc. Or maybe it’s a super awesome bar and movie theater in the lower level of a house! Really, it’s all up to personal preference on what’s important.
This one is pretty self-explanatory. People that are buying higher end homes for their market typically want privacy. This is typically a pretty common theme with buyers in any price point, so we won’t expand on it too much.
This one is a little unique and isn’t always readily available. As an agent, or a curious buyer, this could require some digging on your part. What you’re looking for here is whether or not your property has a story. All properties have some type of history, but what we look for are the unique and interesting facts that add sizzle and intrigue when talking with others/guests. When in doubt, a local historian can assist you in discovering what the history is!
As you can see, the definition for “luxury property” can be a bit of a moving target. If you’re interested in purchasing luxury property or have a client that might be, just make sure you really take some time to figure out what is important to you (or your client). All of the things we talked about are great, but some are more nuanced and available than others. Don’t let that scare you though! Looking at luxury property can be an amazingly enjoyable activity!